In another attempt to help the housing industry, FHA will be raising it's mortgage insurance premium by 25 basis points effective with case numbers issued on 04/18/11.  While that may not seem like much, on a $100,000 loan amount, that is an extra $20.83 per month.  While that may not seem like much, when you add it to the 35 basis point increase last year and you have an annual premium that is more than double what it used to be.  That translates into a real decrease in purchasing power for most first time homebuyers. 

Just when you thought we were starting to see the end to some of the insanity in the mortgage market, in walks Uncle Sam with their host of regulatory solutions to the markets problems.  All I can say is hold on, the world of home finance is about to be taken to the shed by Uncle Sam and let's just say it's not going to be pretty.

If you have buyers who are sitting on the sidelines, they do so at their own peril.  The best rates are likely behind us and the window of opportunity may be closing quickly.